Though provoking comments please

preston99

I’ve another year left on my 5 year fixed mortgage (YBS 5.35%) and so I just wanted to get my brain working. Up to now I have simply made a quick check of other deals and then renewed with YBS if they were in the same ball park. Obviously I need to wise up.

I’ve read the MSE Guide to Remortgaging and have come to the following conclusions:
I want to stick with a 5 year repayment mortgage because I like to know what my payments are.
I would like to start over-paying now that we have completed all the renovations and should have some spare cash so I need to find a mortgage that doesn’t penalise over-payments.

Over points of note:
My LTV is about 25% so I should get access to some good deals.
I have some stocks and shares & cash ISAs (worth roughly 20% of my outstanding loan amount) which I pay into every month.
I tend to spend what I don’t put away although I never go overdrawn or not pay off my credit card in full.
I have no other debts.

Any comments would be welcome.

_Andy_

Hi

I'm not sure exactly what comments or advice you're after specifically?

preston99

Hi Andy,

I'm not sure myself to be honest. I just wanted to get the juices flowing. I'll probably ask some specific questions later when I have a better idea what I'm going to do.

My next tasks is to work out the maths re savings and a mortgage. I need to do some sums.

drrobert

Well if I were in your position, I'd sell the stocks & shares ISA holdings. I think equities will fall further in value over the next year or two as company earnings are downgraded and dividends cut due to recession. You could then the money to reduce your debt and get your mortgage amount down even further when you remortgage next year. Over the few years, credit conditions will remain tight, and the more interest payments you can save, the better.

It's reasonable to keep some money in cash ISAs for emergencies, as long as the money is in a very safe institutions e.g. the National Savings & Investments Direct ISA.

That's what I'd do. Others will have different opinions.

EdInvestor

Never close down ISAs if you can possibly avoid it as you lose the tax free protection..If concerned about stock market volatility, you can switch to bonds/gilts or property fund investments or even leave it the money in the ISA in cash for a while.

Note however that it's typical of mug punters to buy high, sell low. The smart money will be looking to buying in round about now, not selling.The stockmarket is always ahead of events, it has already priced in much of any future downturn.